Bureau Prayagraj- Employees’ Provident Fund Organization (EPFO) has issued a clarification on an important issue related to higher pension. An old provision has been reinstated with this clarification. Under this, some eligible employees will now be able to choose the option of contributing more to pension on the basis of their actual basic salary and dearness allowance (DA). This decision is considered important for those employees who were confused about the limit of pension calculation for a long time.
What was the rule before 2014?
Before September 1, 2014, employees had the option to increase pension contributions based on their actual basic salary. Especially the public sector (PSU) employees got a big benefit from this, because their salary was more than the prescribed limit. But after the amendment was implemented in 2014, the maximum limit of pensionable salary was fixed at Rs 15,000 (Basic Salary + DA). After this the option of higher pension was practically closed.
As per current rules: Maximum pensionable salary: ₹ 15,000 per month, Minimum monthly pension: ₹ 1,000, Maximum possible EPS pension: ₹ 7,500 p.a.
In the clarification issued by the government, it has been made clear that the restored facility of higher pension is not a new benefit. This is just a restoration of the old provision. The important thing is that its benefit will be available only to those employees who have joined as on 1 September 2011.
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